06/01/2009
Two checks for $20,000.00 were deposited to a relative's account without endorsement of the payee. The money from the deposit was diverted to a mutual fund by the person who made the original deposit. If we go back to the issuing bank and sign an affidavit of forgery, will the bank that took the checks for deposit try to recover from all persons named on the account? Are all account holders liable for the actions of one of the account holders? This is a very sticky family situation.
12/08/2008
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
09/29/2008
My customer says that a check she wrote to her daughter was never received, however, the check has cleared the customer’s account and she states her daughter’s signature has been forged. I know the BOFD warrants the endorsement, but what action must be taken to recover the loss? Does the paying bank need to have an affidavit of forgery of the endorser? Please advise.
03/31/2008
My bank has a client that had a "voluntary social companion" steal and forge three checks. The client admitted he allowed her into his home many times prior to this incident and that they had a physical relationship. In speaking with the local police, he is known for engaging in the "oldest profession" (I am not talking about baking bread). The checks were passed at three local courts for criminal fines. The client feels that we should be responsible for his loss. What do you think?
02/04/2008
Yesterday, a local realtor was taken at gunpoint to a bank and ordered to take money out of his/her account and hand it over to the extortionist, who was a woman wearing what appeared to be some form of cultural face covering, veil and hat. The woman, who was waiting in the lobby while the victim pulled money out of the account, was approached by bank employees and asked if she needed help because of her suspicious appearance. She refused, stating that she was waiting for someone. It did not appear that the victim was in distress. A couple of questions arise from this situation:<ol><li>If the employee who was waiting on the victim had suspected what was taking place, what would have been the course of action to take without creating a bigger hostage situation? </li><li>Can bank employees ask someone to remove a cultural head covering because their face is not being shown, and if so, how would you pose the question and not offend anyone culturally?</li></ol>
03/05/2007
We are not currently participating in Check 21 and converting documents. We have had customers claim that a check is a forgery. The check cleared as an IRD and all we have is the replacement document sent to us from the depository bank. When the customer files a police report the police are asking for the original check back so they can test for fingerprints. When we contact the depository bank we are told that the original check has been destroyed. I understand that they have to truncate the check for 14 days then it can be destroyed. After 14 days, what suggestions do you have when the police want the original check to prove forgery and press charges and have you had this come up on previous questions?
11/27/2006
How do I process a forgery on an electronically converted check past the 60 day time frame? Our customer's account has been closed since 1999. The customer received a collection letter and this was how they discovered the forgery.
11/13/2006
We have a bank that is requesting payment because they have a forgery. The forgery is of the drawer's signature. The bank did not send the check back within 24 hours and admits that it was a late return. They keep telling us that under UCC rules they have one year to recover the money from the Bank of First Deposit because the customer has one year to report a forgery. It is my understanding that they did not return the check in a timely manner and their bank is the one out the money. They could have checked their signature card for the proper signature and returned within the deadline. Their customer was out of town and they could not verify with their customer that the check was forged. Their response back to us is that we are the endorsing bank, therefore we are responsible to them for payment. Who will be the loser on the money?
07/01/2006
Document Alteration Techniques...continued
Substance Abuse & Addiction Forgeries
01/09/2006
We have a customer who wrote a check to a business to pay a bill. The check was cashed and he has the returned check. The following month, he got another bill saying that it had never been paid. Come to find out, a person at the business had stolen the checks from the company and deposited them into another account at another bank. We are not sure if the suspect opened the account at another bank in her own name, or if it was in the business's name with their Tax ID and information, as she would have had access to that information as well. Either way, who would be responsible for the loss? I am under the impression that it would fall back onto the business or the other bank, as they do have due diligence to verify and know who they are opening an account for, am I correct?
